barnie
Apprentice
Joined: 29 Dec 2004
Posts: 3
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 Posted: 11/14/07 - 00:44 Post subject: |
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| The five-times salary mortgage is exactly an offer that targets first-time buyers. For a young couple like yourselves it may be the only way to get your home, so it is very important to choose wisely among mortgage conditions. Mortgage lenders make attractive offers to attract consumers with no previous experience with mortgage features. If you informed well, you would notice that ordinary mortgage offers 2.5 to 3 times salary, but lately there are lenders that will make deal with five times salary mortgage. As you where saying, it must cost you more later, you were right. Conditions when taking more money are different, and it will go on your cost. If not necessary, I would advise you to take as much as you need and not a penny above. You will get a better deal if you offer a deposit, more percentage you offer will make you a lower risk for lenders. I presume that you considered a repayment mortgage, but if there is any way to get a flexible mortgage, with good terms as a first-time buyer, it would be better for your finances. A discounted rate and a fixed rate could be a good thing to do, if there are possibilities for something like that. Its not easy for newbies like you because there are various deals you can get, so dont be greedy, it will only get you to trouble, stretching you between incomes and expenses. |
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